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AutoBond Declares Preferred Dividend

4 December 1998

AutoBond Declares Preferred Dividend

    AUSTIN, Texas, Dec. 3 -- AutoBond Acceptance Corporation
(Amex: ABD) ("AutoBond"), listed on the Amex under the symbol ABD, is pleased
to announce the third dividend payment for its preferred stock in the amount
of $0.375 per share.  This dividend amounts to an annualized yield of 15% at
the par face value of $10.00 per share.  The record date is December 15, 1998
and the dividend will be paid on December 31, 1998.
    AutoBond is a specialty consumer finance company engaged in underwriting,
acquiring, servicing, and securitizing retail installment contracts originated
primarily by franchised automobile dealers in connection with the sale of
used, and to a lesser extent, new vehicles to selected consumers with limited
access to traditional sources of credit.  AutoBond is located in Austin, Texas
and acquires contracts nationwide from dealers in approximately 40 states.
AutoBond currently has 6,531,311 common and 1,125,000 preferred shares
outstanding.